State workers to receive P7-K medical allowance

Government workers are set to receive their medical allowance in 2025 following the approval of guidelines by the Department of Budget and Management (DBM) for the grant of a P7,000 medical allowance.

The DBM announced that Budget Secretary Amenah Pangandaman has approved Budget Circular 2024-6, detailing the rules and regulations for the allowance.

The initiative is in accordance with Executive Order (EO) 64, s. 2024, which also authorized a salary increase for government personnel and was signed by President Ferdinand R. Marcos Jr. on August 2, 2024.

“This is a promise fulfilled,” Budget Secretary Amenah Pangandaman said in a statement.

The annual medical allowance aims to provide qualified civilian government personnel with a subsidy to access health maintenance organization (HMO)-type benefits.

“Matagal ko na pong pangarap ito para sa ating mga kababayan. Pagpasok po ng 2025, maaari na po silang makatanggap ng medical allowance para makatulong sa pagkuha nila ng HMO para sa kanilang health-related expenses o gastusin,” Pangandaman added.

The circular applies to civilian personnel in national government agencies, state universities and colleges, and government-owned and controlled corporations not covered by Republic Act 10149 and EO 150, s. 2021.

Eligibility extends to all government workers regardless of their employment status—whether regular, casual, or contractual; appointive or elective; and whether full-time or part-time. Employees in local government units and local water districts are also included.

The medical allowance can be provided either as an HMO-type product coverage purchased by government agencies or employees’ organizations or as a cash subsidy for those opting to avail or renew their own HMO-type benefits.

Budget Secretary Pangandaman expressed gratitude to President Marcos for prioritizing the health of government workers.

“This medical allowance is not just a benefit, it’s a vital investment in safeguarding a healthy workforce and ensuring that they perform at their best,” she said.